Amazon fields bids to replace JPMorgan for co-branded credit card

  • Synchrony Financial (NYSE:SYF) and American Express (NYSE:AXP) are among the firms competing to replace JPMorgan Chase (NYSE:JPM) as Amazon .com's (NASDAQ:AMZN) partner for its popular co-branded credit card, Bloomberg reports, citing people familiar with the matter.
  • The bank is willing to part with the over-$15B portfolio, which could fetch a 15% premium, according to some people familiar with the matter.
  • In the battle for customers, banks have offered a rich set of rewards that make it harder for the lenders to turn a profit. That's made all the harder in issuing co-branded cards, where the bank often shares revenue with the merchant partner.
  • In 2019, Amazon and Synchrony teamed up to launch a secured credit card and in 2018 American Express and the e-commerce giant offered a card for small business.

    For this year the company, based in Seattle revenue will be around 490.55 billion USD. This is according to the average of the analysts' estimates. This is quite more than 2020's revenue of 386.06 billion USD.

    Historical revenues and results Amazon plus estimates 2020

    aandelenanalyses

    The analysts expect for 2021 a net profit of 28.71 billion USD. For this year most of the analysts expect a profit per share of 55.87 USD. With this the price/earnings-ratio is an extreme 60.55.

    Analysts don't expect the company to pay a dividend. The average dividend yield of the general retailers is an attractive 1.54 percent.

    Latest estimates around 4070 USD

    The most recent recommendations for the general retailer are from KBC Securities, ABN AMRO and Barclays .

    Based on the current number of shares Amazon 's market capitalization equals 1684.8 billion USD. The Amazon stock was the past 12 months quite unstable. Since last June the stock is even 29 percent higher. This year the stock price moved between 2576 and 3554 dollar.

    Historical stock prices Amazon

    fundamental data amazon

    At 15.58 the stock trades 0.59 percent higher at 3383.13 USD.

    Analist.nl Nieuwsdienst: +31 084-0032-842
    nieuws@analist.nl

    Copyright analist.nl B.V.
    All rights reserved. Any redistribution, duplication or archiving prohibited. Analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.